PEDRO GOMES ​- ​​REALTOR®

Cell: 778.999.REAL (7325) |

 



As you’re probably aware, the list price you set for your property has an impact on how quickly it sells — and how much you earn on the sale.

 

What you may not realize is just how significant an impact it has. Consider the following examples.

 

Example 1:


You price your property well above its current market value. As a result, many buyers don’t bother to see it because it’s outside of their price range. Those who do see it are confused by the high price tag, (and may even be suspicious.) They may wonder, “What’s going on?”

 

In this scenario, the home will likely languish on the market for weeks or even months. You might even have to lower the price dramatically to re-ignite interest.

 

Example 2:


You price your property just a couple of percentage points lower than what is necessary to gain the interest of qualified buyers. That might not seem like much of a problem. How much can a couple of percentage points matter?

 

Those points matter a lot.

 

On a $400,000 property, pricing your home just 2% lower than necessary could cost you $8,000 on the sale. That’s a serious amount of money!

 

So, as you can see, pricing your home right is serious business. Fortunately, a good REALTOR® knows how to set the right price.

 

Looking for a good REALTOR®? Call Pedro at 778-999-7325 today.

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Property owners received their 2016 assessment notices the first week of January 2016.

 

The 2016 Assessment Notice is BC Assessment’s (BCA’s) estimate of a property’s value as of July 1, 2015, and for new construction or substantially renovated homes, the physical condition as of October 31, 2015.

 

BCA is a publicly owned provincial Crown corporation responsible for determining and reporting property value estimates for the 1,996,112 properties in its database, an increase of 1.06% from 2015. BCA has produced the assessment roll since 1974.

 

Real estate sales determine a property’s value, which are reported annually to BCA. Local and provincial taxing authorities are responsible for property taxation and, after determining their own budget needs, calculate property tax rates based on the assessment roll for their jurisdiction.

 

Municipalities determine tax rates for each property class in the spring, once the assessment roll is finalized. Changes in assessment over the year don’t automatically translate into the same percentage changes in property taxes for any particular class of property or for any individual property.

BCA’s assessment and a REALTOR’S® assessment. Why the difference?

BCA’s assessment and the market value determined by a REALTOR® may be different. Why?

 

Both BCA assessors and Realtors calculate market value by analyzing sales of comparable homes within a local market. They also look at factors that affect value such as size of home, view, location such as on a busy or quiet street, number of bedrooms, construction quality, floor level, and garage or parking stalls.

 

Where every lot and every home on a street are typically the same, both BCA’s value and a Realtor’s value will be similar during stable market conditions. Differences occur in neighbourhoods where lots have been rezoned or are different shapes and sizes, where architecture and views are unique, and where owners have made changes that BCA hasn’t yet taken into account.

When you view your assessment

Property owners can look up their assessments on e-valueBC on BCA’s website.

 

Details include a photo, a property description (land and buildings), the total assessed value, the previous year’s value, the legal description, and a property ID.

 

If property details are incorrect, property owners are directed to complete and submit an e-valueBC Data Validation Form.

 

Property owners can also compare neighbouring properties and sample sold properties to decide whether their property has been correctly assessed.

Deadline to appeal your assessment is February 1, 2016

Property owners who disagree with their assessment should do their homework by:

  • comparing their assessment with neighbouring properties; and
  • contacting BCA at 1-866-valueBC (1-866-825-8322) and talking to staff who can make adjustments if there’s an obvious error, for example if BCA included a complete renovation, when it was merely a spruce-up.

Property owners who appeal their property assessment should review information on the Property Assessment Appeal Board website on how to prepare for an appeal. Then they can fill out the Notice of Complaint (Appeal) Form.

 

The deadline to file an appeal is February 1, 2016.

Each year less than 1 per cent of BC property owners appeal their assessments.


Note: You can’t appeal your taxes. You can only appeal your assessment.

For information about BC Assessment and to access e-valueBC visit www.bcassessment.ca or phone 1-866-valueBC (1-866-825-8322).

Sample Property Value Changes in our neighbourhoods

Vancouver's East Side saw the largest increase at 28 per cent for a detached home on a 33-foot lot. This was followed by Burnaby where a detached home in Buckingham rose 27 per cent, West Vancouver where a waterfront home rose 24 per cent, and in the Garibaldi Highlands where a detached home rose 23 per cent.

Additional examples may be found in this BCA news release.

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Did you know?

  • The total value of real estate on the 2016 BC assessment roll is $1.34 trillion, an increase of 11.1 per cent from 2015.
  • In BC, 87.7 per cent of all properties are classified with some residential component, equating to $1.018 trillion.
  • Changes in property assessment reflect movement in the local real estate market and can vary greatly from property to property.
  • Real estate sales determine a property’s value, which is reported annually to BCA. 
  • BCA’s assessment roll provides the foundation for local and provincial taxing authorities to raise $7 billion in property taxes each year which funds community services including the school system. 
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Should You “High Ball” Your Listing Price?

 

One of the most important decisions you make when selling your home is setting the listing price. That can be tricky. After all, if you price your property too low, you leave money on the table — perhaps thousands of dollars. On the other hand, if you price your home too high, many buyers won’t even bother to see it, believing it is too expensive.

 

Even with that reality, there are some sellers who contemplate setting a high listing price in the hopes of a windfall. They want some unsuspecting buyer to fall in love with the home and buy it — even though it’s overpriced.

 

That rarely, if ever, happens.

 

Instead, the listing often languishes on the market because its listing price is conspicuously much higher than its market value.

 

Think about it. If two similar homes, side-by-side, are for sale, and one is priced $40,000 higher than the other, wouldn’t you wonder what was going on? That’s exactly what the market thinks. “Why is that home priced so high?”

 

Of course, many buyers, who might otherwise be interested in the property, won’t even consider seeing it, simply because it’s outside their price range.

 

It gets worse. When an overpriced home sits on the market with no offers for several weeks, the price will often need to be adjusted down. That helps the situation a little. However, you’ve lost the excitement created by a “new listing.” Yours is now an old listing struggling to get attention.

 

There’s a better way…

 

Setting your list price at or near the market value is much more likely to generate interest from qualified buyers and maximize how much you make on your home. 

 

That market value may even be higher than you think!

 

Interested in finding out how much? Call Pedro @ 778-999-7325 today.

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